📝#96: Roblox Under Attack
Roblox faces criticism for inflated user metrics. Lamborghini unveiled its Fast ForWorld platform with digital supercars. AAA-Web3 game receives major attention on Twitch. Google goes Roblox.
Hey, it’s Marc ✌️
51 Insights is evolving with new, powerful formats on the way. Let us know what content you enjoy most so we can bring you more of what you love!
Let’s dive in 🦈
⏱️ Read time: 3min
👉 Want to get in front of 50k+ business leaders or accelerate your growth? Work with us here.
📚 Our Top Reads
Roblox: Inflated Key Metrics For Wall Street And A Pedophile Hellscape For Kids. Hindenburg Research. Link
The Rise of Fully Onchain Games. BITKRAFT. Link
Is Mixed Reality Signaling a Platform Shift. BITKRAFT. Link
CONSOLE WARS 2.0. Simon Pulman. Link
The Memecoin Super(onboarding)cycle. TPan. Link
Exploring Roblox – The Future of Brand Engagement with Gen Z and Alpha. Link
🎙️ Power Lunch: RSVP Now
In this episode, we’re sitting down withJean-Charles CAPELLI 🟢(Chairman) and Matthew Warneford (CEO) of Dubit, a pioneer in virtual worlds for brands since 1999. We’ll dive into virtual brand experiences, including Starbuck’s entry into Roblox.
Don't miss out—register now & secure your spot!
✨ Web3 & Consumer
Roblox got Hindenburg-ed❓
Hindenburg Research, a well-known short-seller, has accused Roblox of misleading investors about its user metrics and inadequately protecting children on its platform.
The report quoted Roblox as "A Pedophile Hellscape For Kids."
Roblox's stock plummeted 9.4% in early trading, -15% YoY.
Key Allegations against Roblox:
Inflated User Metrics: The report Roblox inflates its user metrics by 25-42%, misleading investors by counting multiple accounts from individuals or bots as unique Daily Active Users (DAUs).
Child Safety Compromises: It accuses Roblox of inadequate safety measures, enabling child exploitation and grooming due to lax moderation policies.
Overstated Engagement: It further asserts Roblox inflates user engagement hours from 2.4 to just 22 minutes daily, largely due to bot activity.
Two Sets of Metrics: Hindenburg alleges Roblox uses inflated user metrics for investors while tracking accurate figures internally.
Why it matters: The Hindenburg report highlights Roblox’s child safety failures and inflated metrics. This is a big deal, as Roblox’s success rested – at least partially – on their exceptional engagement and user numbers. Brands may face potential backlash by being linked to a platform under scrutiny.
Be smart: Since 2020, Hindenburg has been the market's pre-eminent short-selling firm. They have an interest in driving Roblox’ stock price down.
Zooming in: Roblox has mandatory age verification for features like Spatial Voice, restricting voice chat to verified users over 13.
It also offers a comprehensive parental guide to help parents and caregivers navigate the platform.
Devil’s advocate: Roblox’s security measures leave gaps, as optional parental controls and moderation tools aren't fully effective in protecting children.
Meanwhile: Roblox is actively working with lawmakers on child safety legislation, including the Kids Online Safety Act (KOSA) and COPPA 2.0. It is also enhancing platform security through AI tools to combat cyberbullying, ensuring regulations promote creativity and accessibility for users aged 13 to 16.
What they’re saying:
“We totally reject the claims made in the report. The financial claims made by Hindenburg Research are simply misleading. The authors are, admittedly short sellers and have an agenda irrespective of the substance of Roblox’s business model and results.”
Desiree Fish, Chief Communications Officer, Roblox
Today’s Top PRO Reads:
More Web3 Consumer Highlights:
FFFace.me and Bershka launched an AR showcase with virtual try-ons at Bershka's Madrid Flagship, driving over 10K unique interactions in the first weekend. The two AR Mirrors engage customers with the new 'GEN' collection, increasing in-store traffic. Link
Škoda unveiled the all-new Elroq with a global premiere, supported by interactive content like a visualizer, configurator, and downloadable 3D model. The event also marked a first in the automotive industry, distributing 200 NFTs to livestream attendees as proof of attendance. Link
Magic Eden and Ubisoft are launching a 10,000-piece NFT collection on Arbitrum for “Captain Laserhawk,” offering players influence over game updates and exclusive rewards. Link
🎮 Brands & Gaming
Supercars Hit the Metaverse 🚖
Automobili Lamborghini has partnered with Animoca Brands to launch an immersive loyalty platform Fast ForWorld.
It features interoperable Lamborghini supercars as digital assets across multiple gaming platforms.
It will go live on November 7, 2024. The waitlist is open.
Why it matters: Lamborghini’s digital supercars let users buy, sell, and unlock rewards in immersive experiences, going beyond traditional loyalty programs.
Zooming in: Developed by Gravitaslabs, Fast ForWorld’s supercars will be accessible across multiple gaming platforms including Torque Drift 2, REVV Racing, and the Motorverse Hub.
How it works: Users must secure the digital Revuelto supercar, which unlocks the Genesis Capsule with exclusive benefits and serves as a gateway to an interoperable ecosystem, such as:
Opportunity to access Lamborghini’s IRL events
3D personalized avatar
Early bird access to digital launches
Collectibles and other rewards
The big picture: Animoca Brands is intensifying its focus on the convergence of Web3 and gaming through subsidiaries like Motorverse and Mocaverse. By creating an interoperable ecosystem, it’s redefining loyalty and community.
Takeaway: Brands are moving past basic NFT drops. They're combining Web3 and gaming to create richer experiences that connect digital and real-world activities. Using blockchain and shared assets, they're building systems that boost engagement, loyalty, and value through games and multi-platform experiences.
More Gaming Highlights:
Off the Grid, a blockchain-based battle royale game is gaining traction with major streamers like Ninja and TimTheTatman. With crypto (Avalanche) as an optional feature, it has launched in early access on PS5, Xbox Series X|S, and PC. Link
Google launched its official game on Roblox, "Be Internet Awesome World.” Link
That’s all for now, folks. The next edition on crypto, macro & AI will follow on Tuesday.
Talk soon,
– Marc & Team
PS: Before you go, here’s how our industry OGs, vast network, research team & 50k+ B2B audience helps you:
Co-publish enterprise-grade reports with us, driving traffic and boosting B2B outbound conversion rates.
Execute a multi-channel growth campaign that delivers better results than anything else in Web3's consumer space.
More feedback? Reply to this email.
Thanks Marc!